Pre-Trading Thoughts

*Key news articles for today*
The MPC will meet tomorrow to decide on key interested rates.  In general, we believe the inflation outlook underscores a disinflation view that supports easing to kick off by 2024-end, or – more conservatively – by 1Q2025. We believe the CBE might prefer to keep rates unchanged in its upcoming meeting tomorrow. 

The IMF has revised down its projection for Egypt’s real GDP growth by 0.3% in FY2023/2024 and the current FY2024/2025 to 2.7% and 4.1% percent, respectively

Egypt's trade deficit decreased by 2.5% YoY in April, recording about USD2.7 billion.

State-owned Shalateen Mineral Resources Company wants to deliver 1.2 tons of gold — worth EGP 2.6 bn — to the CBE, that would mark a 60% y-o-y increase.

Newmont — the world’s largest gold miner — is mulling entry into the Egyptian market, a government official said. Pending parliamentary approval.

Gov’t to clear USD 3.2 bn worth of arrears to foreign oil and gas companies operating in the country during the current fiscal year over three installments, an unnamed government official said. The first installment — of around USD 1.2 bn — is scheduled for October. 

The Suez Canal Authority is looking to sell a stake in its Canal Company for Mooring and Lights (CCML) in an IPO on the EGX early 2025, SCA boss Osama Rabie said.

The CBE accepted bids from 32 banks for EGP 1.1 tn in fixed-rate deposits at a rate of 27.75% during its weekly fixed-rate auction.

Medical supplies are being released from ports after the central bank made the required FX available for importers. The supplies have been held at the ports since May.

Egypt, Jordan are in discussions over doubling the capacity of their electricity line to 1.1 GW and then doubling it again to 2 GW at a later stage, Jordanian Energy Minister said.

The Oil Ministry is working on a digital platform for mining investments as part of its efforts to create a more attractive investment platform for the mining sector, Oil Minister said.

ACTF private placement increased to 6.6 times by the end of yesterday. The public and private offering of ACTF started on Tuesday, July 9, 2024. The public offering is scheduled to end on July 23, and the private offering on the 18th.

FABMisr is planning to launch its consumer finance arm with a capital of EGP75 mn once it receives the approval from the Financial Regulatory Authority. The bank’s new arm will likely begin operation in 4Q24.

State-owned pharma manufacturer HoldiPharma is reportedly looking to appoint an investment bank to promote and manage the offering of its subsidiary Misr Pharma to a strategic investor.